Air France-KLM has formally submitted a non-binding offer for Portugal's TAP, initiating a bidding contest for the airline as European carriers seek consolidation opportunities. The Franco-Dutch group, already eyeing TAP's privatization for months, was the first to submit a more formal proposal ahead of a Thursday deadline. Rivals including Germany's Lufthansa and Britain's IAG were also invited to express interest.

The process will transition to a binding phase expected to conclude by summer. Portugal aims to sell up to 49.9% of TAP's capital. Air France-KLM CEO Ben Smith described TAP as a 'natural fit,' stating ambitions to strengthen Lisbon operations and expand connectivity to cities like Porto.

TAP operates routes to Brazil and Canada. The airline was fully renationalized during the pandemic, requiring TAP to repay state aid before pursuing acquisitions.